NEW YORK, July 27, 2026 – STAK Inc. (NASDAQ:STAK) experienced a sharp reversal in premarket trading Monday, with shares falling 55.1% to $4.16, erasing a significant portion of Friday’s extraordinary 602.3% gain that had pushed the stock to $9.27 and a peak of $12. The dramatic pullback highlights growing investor scrutiny over the company's available share supply and the potential overhang from outstanding warrants.
Volume and Supply Dynamics
On Friday, trading volume exceeded 59 million shares, nearly six times the projected Class A share count of 10.01 million. The Class A tally includes 4.01 million shares disclosed as of December 31, plus an additional 6 million shares issued in January. While each share can trade multiple times, the volume-to-supply ratio points to an exceptionally high concentration of trading activity, raising concerns about liquidity and price stability.
Nearly 90% of the initial Class A share count is represented by 9 million warrants, each exercisable at $0.46 per share. These warrants, issued as part of a January offering that generated approximately $2.2 million in net proceeds, cannot be exercised until 2028. If fully exercised, they would account for 31.9% of the total shares outstanding, representing a significant long-term dilutive overhang at current prices.
Valuation Adjustment
The premarket decline has substantially compressed STAK’s valuation metrics. Based on initial calculations using a total share count of 19.21 million (both classes with identical economic rights), the implied equity value fell from $178.1 million at Friday’s close to $79.9 million in premarket trading. The price-to-annualized first-half revenue multiple dropped from 4.6 times to 2.1 times, while the price-to-December book equity multiple declined from 11.9 times to 5.3 times. Despite the pullback, the stock still trades at more than double its basic annualized revenue.
Operational Context
STAK, which manufactures vehicles and equipment for oilfield applications, reported first-half unaudited revenue of $19.2 million, up 13.4% year-over-year. However, gross margin contracted to 27.24% from 30.65%, and net income fell to $1.82 million from $2.0 million. The company attributed the margin decline to higher production costs for new vehicles and promotional pricing. The balance sheet as of December showed $1.92 million in cash against $7.57 million in short-term debt, indicating a relatively thin capital position.
AI Energy Project and Forward Outlook
A June 8 company announcement outlined plans for a U.S. subsidiary focused on artificial intelligence energy infrastructure, with STAK holding a 60% stake. The subsidiary aims to deploy modular gas generators capable of delivering up to 1.4 megawatts each. Chairman and CEO Chuanbo Jiang stated that AI expansion was driving “substantial and sustained demand for reliable, distributed power solutions.” However, the announcement lacked specific customer commitments, order values, or financing details.
The project remains in its early stages, subject to finalizing agreements and securing regulatory approvals. Investors are expected to focus on concrete evidence of progress, such as signed contracts, permits, or financing arrangements. In the absence of such milestones, trading volumes and supply dynamics may continue to exert outsized influence on the stock’s price.
Risks and Considerations
The limited projected Class A share base, combined with the potential future exercise of warrants, introduces significant volatility risk. While the warrants are not exercisable until 2028, their existence creates a persistent overhang that could amplify both gains and losses. The market’s focus on share supply rather than operational performance underscores the speculative nature of the recent rally and the challenges facing STAK as it seeks to execute on its AI energy strategy.
